How to Borrow More Against Your Property. 6 Exemptions to the LVR Rules | Ep. 97

In this episode, we walk through the 6 exemptions to the LVR rules, which allow you to borrow above the standard lvr restrictions set by the reserve bank.

These are: 

1. Not all bank lending needs to be within the LVR rules – only 80% of owner-occupier lending and 95% of investor lending needs to fall within the LVR rules. This means that 20% of owner-occupier lending and 5% of investor lending can fall outside the 20% deposit requirement for owner-occupiers and 30% deposit requirement for investors


2. New builds are exempt from investor LVR NZ rules – If you purchase a brand new property then you won't be subject to LVR restrictions. Theoretically, you could get a loan for 100% of the value of the property and it would be totally kosher and be within the RBNZ's lvrs.


3. Remediation – if your property requires work in order to be brought up to code, then you can borrow above the lvrs in order to fund these works


4. First Home Loans – All First Home Loans are exempt from lvr restrictions. These are low deposit loans that are offered to fire home buyers who meet certain criteria


5. Bridging loans – An owner-occupier can temporarily go over the lvrs if it is for a short time and agreed with the banks while the buy and sell a different property


6. Refinancing – property owners are able to refinance between banks and as long as the loan amount doesn't increase then the refinanced lending is exempt form lvr restrictions.